The importance of the right commercial insurance

When police impounded 32 vehicles in Suffolk in July 2019, the haulage owner had a stark reminder of why commercial insurance coverage is important. Whilst the majority of the issues related to road traffic offences. These offences were using a mobile phone and driving with defective tyres. One vehicle did not have the right insurance.

Can your business afford it?

The loss of a vehicle for any business can be inconvenient, For a small business, it can be a nightmare. Under section 165A of the 1988 Road Traffic Act, a vehicle can be seized if the driver doesn’t have insurance. Of course, it’s illegal to drive in the UK without at least third party cover. However, what happens if you or your fleet decision-makers forget to update your insurance?

Driving any vehicle without insurance carries a fixed penalty of £300 and 6 points. If you decide to take the case to court, it could result in an unlimited fine. Plus, disqualification from driving and the vehicle can be seized and destroyed. A company can receive a fine if it is in charge of the vehicle.

Driving without insurance automatically invalidates your insurance and the IN10 endorsement stays active for 4 years. Plus, disclosure to insurers must continue for a further year after that. The result is higher insurance premiums for five years. It also includes the risk of another fine if guilty of non-disclosure of information. Can your business afford to take that risk?

executive car being towed because it didn't have the right commercial insurance

Who’s liable for commercial insurance?

As many as one-third of commercial drivers are uninsured. Like the Suffolk drivers who were in trouble for traffic misdemeanours, the consequences can turn out to be far harsher than a faulty indicator fine. But who is liable for insurance?

Whether you’re the owner of a commercial vehicle or it belongs to your employee, it’s always worth checking that the right insurance cover is in place. If your employee is prosecuted and claims ignorance as to whether the vehicle was covered or not, your business could be held liable.

Ultimately, if you own a vehicle, whoever is driving, you’re responsible for ensuring that the driver has the right level of insurance cover. You can use the Motor Insurance Database to check if you’re not sure.

Why you need commercial insurance

Whether your vehicles are used for goods in transportation or to travel from the office and job to job with tools, you need commercial insurance. Running a business can be enough of a headache without the extra challenges and risks that being uninsured bring.

A good business insurance package will protect your premises and contents and cover you for claims made against you by employees or members of the public. If you use commercial vehicles from a single van to a fleet, you’ll need specialised commercial vehicle insurance. This can significantly bring down your costs if you run a number of vehicles and can also include specialised cover for Sat Navs, windscreens and even driving in Europe.

Look for a policy that includes public and employers liability insurance plus legal cover that will take care of some of the costs if you have to go to court. Add breakdown recovery and your commercial vehicles will be fully covered and won’t be seized under Section 165A.

With this purpose in mind, we can introduce a new service, MyInsurance.Expert.

We have a network of leading fleet insurance providers who can provide quotes for all probabilities. As a result, we can save you time and money.

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